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Daily Newsletter

11 August 2023

Daily Newsletter

11 August 2023

Tweets of the Week: Sustainable supply chain, ESG goals, Tapestry’s acquisition deal

The fashion supply chain trends on Twitter (X) this week range from the US government's plan for building sustainable federal supply chains to Tapestry's portfolio expansion through acquisition of rival luxury group Capri Holdings.

Shemona Safaya August 11 2023

Other key tweets this week include fashion brands and retailers urging US agencies to tackle textile waste, and the BGMEA's collaboration with NGO Solidaridad to upscale Bangladesh's apparel sector in line with its ESG vision.

https://twitter.com/MZ_ESGiQ/status/1686821802994188288

The US government explains the proposed Sustainable Products and Services procurement rule through the Federal Acquisition Regulation (FAR) Council, will strengthen existing sustainable products requirements by directing federal buyers to purchase sustainable products and services to the maximum extent possible.

However, AAFA president and CEO Steve Lamar tells Just Style exclusively that the first step in this new plan should be to "cease dependence on forced labour" by eliminating contracting preferences to US federal prisons.

https://twitter.com/uspirg/status/1688981017581981703

A group of fashion brands, online clothing retailers, resellers, and e-commerce platforms are urging the US Environmental Protection Agency (EPA) to tackle the country's textile waste.

The coalition, which includes Swedish fashion retailer H&M, rental e-commerce platform Rent The Runway, fashion marketplace The RealReal, sustainable fashion brand Reformation, and online fashion thrift store thredUp, is proposing significant changes to the Extended Producer Responsibility (EPR) law to include the reuse and recycling of textiles.

https://twitter.com/Reuters/status/1689743422855274497

Luxury fashion parent company of Coach and Kate Spade, Tapestry, Inc., is set to expand its brand portfolio with the acquisition of rival global fashion luxury group Capri Holdings Limited, which owns Versace and Jimmy Choo amongst others, in a deal valued at $8.5bn.

As part of the deal, Tapestry says it will be uniting six “distinctive brands” and expanding its portfolio reach across consumer segments, geographies and product categories.

https://twitter.com/AsiaSolidaridad/status/1689531957330296832

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has signed a memorandum of understanding (MoU) with NGO Solidaridad Network Asia with the aim of combining efforts to create a sustainable and green apparel sector.

The collaboration aims to combine efforts on worker wellbeing and reskilling; enhancing productivity, building a digital platform for sustainability reporting as well as achieving ESG standards and international corporate due diligence, according to Bangladesh publication, Bangladesh Post.

Each week, Just Style’s journalists select top tweets that summarise the social media buzz in our sector, underpinned by GlobalData’s analytics. These social media signals help us understand brand sentiments and the themes driving conversations on social platforms. This new, thematic coverage is driven by our underlying Disruptor data which tracks all major deals, patents, company filings, hiring patterns and social media buzz across our sectors. 

Value apparel has gained appeal amid high inflation

Per latest GlobalData estimates, the global value apparel market was valued at $228.8bn in 2022, exceeding pre-pandemic levels and outperforming the other apparel price positions. This was partly due to consumers trading down to more affordable brands as they faced inflationary pressures, but also due to the rapid rise of fast fashion player Shein, which has leapt into the market leading position. Between 2022 and 2027, the global value apparel market is forecast to achieve a CAGR of 3.2%. Gen Z is a key target audience for value apparel players, due to their usually limited disposable incomes and high purchasing frequencies as a result of wanting to follow rapidly changing trends meaning they often prefer cheaper brands. As fashion is of high importance to this demographic, they are also less likely to cut back on spending on clothing and footwear amid inflationary pressures. However, value players are under pressure to reduce their environmental footprints amid changing consumer perceptions and evolving regulations regarding sustainable business practices. Supply chain disruptions and higher production costs continued to impact value brands in 2022 due in part to the outbreak of the war in Ukraine and lasting COVID-19 restrictions in China, which is highly detrimental to value players due to their already thin profit margins and their low price business models.

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